Ohio farmers grow concerned over tariff impacts
Retaliatory tariffs by China and Mexico in response to the Trump Administration could disrupt the agriculture industry supply chain.
Companies like Deerfield Ag Services buy crops from regional farmers based on grain futures' predictions of price per bushel and manage large international customers and shipments. Deerfield Ag Services grain merchandiser Benjamin Nething says they are prepared to see some parts of their overseas operations affected over the next few months, though their exports are typically sent to other Asian countries.
"There certainly could be impact in those freight exchanges and we could see steamship lines adjust rates," Nething speculated.
Farmers are also growing concerned.
Though this year's major crops are expected to bring in more comfortable profits than in years past, political uncertainty may inspire farmers to store their grains for a longer period of time if they feel the market is too risky at the start of the harvest.
Nething tells Deerfield Ag Services is encouraging farmers to evaluating the costs associated with their crops and their profit before making decisions on what amount they should sell or store. So far, he added, it's business as usual.
"We're still buying grain from our farmers, we're advising that, you know, we act with cool heads and a steady hand," Nething noted.
Heritage Cooperative grain merchandiser Ralph Wince says he expects tariffs could become more of a pressing issue, if the Trump Administration does not take action before major crops are ready for harvest.
"We need to have a tariff agreement finalized for China by the fall, or else there will be some repercussions on the export front then," Wince said.